E-Commerce: E-Procurement Anil Cheerla, Allen Kenney, Robyn King MBAD 251 April 8, 2009
Definitions <ul><li>In general, e-procurement refers to the electronic acquisition of goods and services for organizations...
B2B evolution
The Supply Chain <ul><li>The supply chain process consists of a number of interrelated sub-processes and roles </li></ul><...
 
 
<ul><li>Procurement Process </li></ul>Concept  to Check Receipt of Goods/Services Supplier  Communications Product & Proce...
Web-based Procurement System
Main Types of E-Procurement <ul><ul><li>e-sourcing–   </li></ul></ul><ul><ul><li>The process and tools that electronically...
E-Procurement Benefits <ul><li>Minimizing the purchases made from non-contract vendors </li></ul><ul><li>Expedited payment...
E-Procurement Benefits <ul><li>Cost savings via streamlining </li></ul><ul><li>Control over maverick spending </li></ul><u...
Companies Engaged in E-Procurement <ul><li>Honeywell </li></ul><ul><li>GlaxoSmithKline </li></ul><ul><li>Royal Dutch Shell...
E-Procurement in action
E-Procurement Providers
Concerns <ul><li>Are you introducing security and control risks by instituting new systems? </li></ul><ul><li>What are the...
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E Procurement

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E Procurement

  1. 1. E-Commerce: E-Procurement Anil Cheerla, Allen Kenney, Robyn King MBAD 251 April 8, 2009
  2. 2. Definitions <ul><li>In general, e-procurement refers to the electronic acquisition of goods and services for organizations. </li></ul><ul><li>“ E-procurement is using the Internet to operate the transactional aspects of requisitioning, authorizing, ordering, receipting and payment processes for the required services or products .” </li></ul><ul><li>(Source: The Chartered Institute of Purchasing & Supply) </li></ul>
  3. 3. B2B evolution
  4. 4. The Supply Chain <ul><li>The supply chain process consists of a number of interrelated sub-processes and roles </li></ul><ul><ul><li>Acquisition of materials from suppliers </li></ul></ul><ul><ul><li>Processing of a product or service </li></ul></ul><ul><ul><li>Packaging it and moving it to distributors and retailers </li></ul></ul><ul><ul><li>The eventual purchase of a product by the end consumer </li></ul></ul>
  5. 7. <ul><li>Procurement Process </li></ul>Concept to Check Receipt of Goods/Services Supplier Communications Product & Process Development Requisition Creation Approval Cycle P.O. Generation Invoice eProcurement Payment Advance Ship Notice INVOICE INVOICE
  6. 8. Web-based Procurement System
  7. 9. Main Types of E-Procurement <ul><ul><li>e-sourcing– </li></ul></ul><ul><ul><li>The process and tools that electronically enable any activity in the sourcing process, such as quotation/tender submission and response, e-auctions, online negotiations, and spending analyses </li></ul></ul><ul><ul><li>e-tendering– </li></ul></ul><ul><ul><li>The “invitation” to participate in a tendering (bidding) system </li></ul></ul><ul><ul><li>e-informing– </li></ul></ul><ul><ul><li>Gathering and distributing purchasing information both from and to internal and external parties using Internet technology. </li></ul></ul><ul><ul><li>Web-based ERP– </li></ul></ul><ul><ul><li>Creating and approving purchasing requisitions, placing purchase orders and receiving goods and services by using a software system based on Internet technology </li></ul></ul><ul><ul><li>e-MRO– </li></ul></ul><ul><ul><li>Indirect materials used in activities that support production </li></ul></ul><ul><ul><li>e-reverse auctioning - tendering or bidding model </li></ul></ul>
  8. 10. E-Procurement Benefits <ul><li>Minimizing the purchases made from non-contract vendors </li></ul><ul><li>Expedited payment process and savings due to expedited payments </li></ul><ul><li>Improved invoice reconciliation and dispute resolution </li></ul>
  9. 11. E-Procurement Benefits <ul><li>Cost savings via streamlining </li></ul><ul><li>Control over maverick spending </li></ul><ul><li>Better information flow between buyers and suppliers </li></ul><ul><ul><li>Increased buying power and better purchase price through aggregation </li></ul></ul>
  10. 12. Companies Engaged in E-Procurement <ul><li>Honeywell </li></ul><ul><li>GlaxoSmithKline </li></ul><ul><li>Royal Dutch Shell </li></ul><ul><li>Sun Microsystems </li></ul><ul><li>Aeroxchange </li></ul><ul><ul><li>Provides Internet-based infrastructure for aviation industry </li></ul></ul>
  11. 13. E-Procurement in action
  12. 14. E-Procurement Providers
  13. 15. Concerns <ul><li>Are you introducing security and control risks by instituting new systems? </li></ul><ul><li>What are the transition costs of implementing an e-procurement system for purchasing? </li></ul><ul><li>Do new e-procurement systems work with suppliers’ technologies? </li></ul><ul><li>Do employees and managers have necessary skills and willingness to work with new e-commerce technology? </li></ul>
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